Crypto Learning Series — Day 3
Circulating Supply vs Total Supply vs Max Supply
These 3 terms can look confusing at first, but the difference is simple
1. Circulating Supply
Tokens that are currently available and circulating in the market
2. Total Supply
The total number of tokens that currently exist, including tokens that may not be circulating
3. Maximum Supply
The maximum number of tokens that can ever exist, if the project has a defined maximum
Simple example:
Maximum Supply = 100M
Total Supply = 80M
Circulating Supply = 20M
So:
20M tokens → currently circulating
60M tokens → existing but not circulating
20M tokens → not yet created/released
Why does this matter?
Because supply affects Market Cap, FDV and future dilution
Before researching a token, check:
Price + Market Cap + Circulating Supply + Total Supply + Max Supply
Tomorrow: Token Unlocks — why do they matter?
Did you know the difference between these three?
Crypto Learning Series — Day 2
What is FDV?
Yesterday we learned about Market Cap
Today, let's understand FDV — Fully Diluted Valuation
FDV estimates the value of a token if all of its maximum/token supply were in circulation, depending on the project's stated supply structure
Simple formula:
FDV = Token Price × Maximum Supply
Example:
Token price = $2
Maximum supply = 100 million
$2 × 100M = $200M FDV
Now compare:
Market Cap = $20M
FDV = $200M
That's a big difference
Why does it matter?
Because a large amount of tokens may still be locked, reserved, or scheduled for future release
Future token unlocks can increase circulating supply and create potential dilution or selling pressure, although an unlock does not automatically mean the price will fall
So when researching a token, don't look at price alone
Check:
Market Cap + FDV + Token Unlock Schedule
Tomorrow: Circulating Supply, Total Supply & Maximum Supply
Are you checking FDV before researching a new token?